Infosys Buyback

CLOSING BELL: Individually, Punjab and Sind Bank (PSB), Bank of India, Bank of Baroda, Central Bank of India, Indian Overseas Bank, and UCO Bank gained between 6 per cent and 15 per cent

Market players said buyback will support the stock price in the interim

The stock underperformed both the Nifty and the Nifty IT index, which fell 1.5% and 2%, respectively

However, they have not specified the quantum of the buyback the company could announce. Infosys is scheduled to announce its Q2-FY23 numbers on October 12

The buyback could be worth Rs 10,000 - 12000 crore (around 2 per cent of market cap) at a price of Rs 1650- 1670 per share, a media report said

Shares of Infosys closed the session down 2.23 per cent at Rs 785 on Tuesday

In January, Infosys had announced that it would buy back shares of the company for an amount aggregating up to Rs 8,260 crore (maximum buyback size) at a price not exceeding Rs 800 per equity share

The company in January had announced that it would buy back shares of the company for an amount aggregating up to Rs 8,260 crore (maximum buyback size) at a price not exceeding Rs 800 per equity share

The company had said it would spend Rs 13,000 crore in buying back 4.92 per cent of its paid-up equity share capital at a price of Rs 1,150 a piece

The founders and families classified as promoters group held 29.28 crore shares

While the 'entitlement ratio' for retail shareholders is 28 per cent, the 'acceptance ratio' could be as high as 50 per cent, say brokers

This comes after Nilekani became chairman to stem the crisis that emerged after Sikka's resignation

According to him, the board could have been more forceful in setting price target

The stock was up 3% at Rs 1,010 on BSE in early morning trade.

Sources say Sebi allowed fungibility for Infosys ADRs, GDRs so holders can tender shares in buyback

High ADR shareholding forces IT major to obtain multiple clearances

Given the performance of stocks over the past few months and the mounting cash pile in their books, most information technology companies - Infosys, TCS, Wipro and HCL Technologies - have announced a buyback to reward shareholders over the past few months.The buyback in most cases was through the tender route, under which repurchases were executed using a fixed price tender offer. TCS board, for instance, approved and completed its proposal to buy back up to 56.14 million equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore at Rs 2,850 per equity share. Besides TCS, HCL Technologies, too, has completed the buyback process.On a year-to-date basis, Infosys has lost over 3% at the bourses as compared with around 20% rally in the Nifty50 index, ACE Equity data show.Surprisingly, Infosys that announced a buyback ahead of its peer TCS, is yet to set the ball rolling. Despite more than three months since the company first indicated its intention, the contours ...